QUALCOMM (QCOM) and Inseego (INSG) Head-To-Head Contrast

QUALCOMM (NASDAQ: QCOM) and Inseego (NASDAQ:INSG) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares QUALCOMM and Inseego’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
QUALCOMM $22.29 billion 4.25 $2.47 billion ($2.83) -22.61
Inseego $243.55 million 0.44 -$60.57 million ($1.22) -1.50

QUALCOMM has higher revenue and earnings than Inseego. QUALCOMM is trading at a lower price-to-earnings ratio than Inseego, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

76.2% of QUALCOMM shares are owned by institutional investors. Comparatively, 12.1% of Inseego shares are owned by institutional investors. 0.2% of QUALCOMM shares are owned by company insiders. Comparatively, 4.1% of Inseego shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

QUALCOMM pays an annual dividend of $2.28 per share and has a dividend yield of 3.6%. Inseego does not pay a dividend. QUALCOMM pays out -80.6% of its earnings in the form of a dividend. QUALCOMM has increased its dividend for 7 consecutive years.

Analyst Ratings

This is a summary of recent recommendations and price targets for QUALCOMM and Inseego, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QUALCOMM 0 15 11 0 2.42
Inseego 0 1 1 0 2.50

QUALCOMM currently has a consensus price target of $68.96, indicating a potential upside of 7.76%. Inseego has a consensus price target of $1.88, indicating a potential upside of 2.46%. Given QUALCOMM’s higher possible upside, equities analysts clearly believe QUALCOMM is more favorable than Inseego.

Risk & Volatility

QUALCOMM has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, Inseego has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500.

Profitability

This table compares QUALCOMM and Inseego’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QUALCOMM -18.65% 18.10% 8.48%
Inseego -30.71% N/A -24.17%

Summary

QUALCOMM beats Inseego on 13 of the 17 factors compared between the two stocks.

About QUALCOMM

QUALCOMM Incorporated is engaged in the development and commercialization of a digital communication technology called code division multiple access (CDMA). The Company is engaged in the development and commercialization of the orthogonal frequency division multiple access (OFDMA) family of technologies, including long-term evolution (LTE), which is an Orthogonal Frequency Division Multiplexing (OFDM)-based standard that uses OFDMA and single-carrier Frequency Division Multiple Access (FDMA), for cellular wireless communication applications. The Company’s segments include QCT (Qualcomm CDMA Technologies), QTL (Qualcomm Technology Licensing) and QSI (Qualcomm Strategic Initiatives). The Company also develops and commercializes a range of other technologies used in handsets and tablets that contribute to end user demand. The Company’s products principally consist of integrated circuits (chips or chipsets) and system software used in mobile devices and in wireless networks.

About Inseego

Novatel Wireless, Inc. is a provider of intelligent wireless solutions for the mobile communications market. The Company’s range of products includes intelligent mobile hotspots, universal serial bus (USB) modems, embedded modules, integrated asset-management and mobile tracking machine-to-machine (M2M) devices, communications and applications software and cloud services. It operates in the wireless communications industry in two product categories: M2M Products and Solutions, and Mobile Computing Solutions. M2M Products and Solutions includes its M2M embedded modules, integrated M2M communications devices, Ctrack fleet management platform and its service delivery platforms, Crossroads, DMS, the N4A DM and N4A CMS that provide device management and service enablement. Mobile Computing Solutions includes its MiFi brand of intelligent mobile hotspot devices, USB modems and embedded modules that enable Internet access and data transmission and services via cellular wireless networks.

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